Mylan NV (NASDAQ:MYL) Announces Successful Bond Offering Worth $1.5 Billion As Part Of Its Extended Debt Maturities


Mylan NV (NASDAQ:MYL) has announced a successful bond offering worth $1.5 billion as part of its strategy involving the extension of its debt maturities so that it can strengthen its capital structure.

The company unveiled the pricing scheme for the $1.5 billion offering on Friday. The offering included senior notes worth $750 million at 4.550 percent due in 2028 and another aggregate principal amount of $750 million at 5.200 percent that are due in 2048. Mylan Inc. was the guarantor while Mylan Inc. was the issuer.

Mylan intends to leverage the net proceeds from the sale to redeem outstanding notes with an aggregate principal amount worth $1.5 billion that is due this year as well as 2019. Mylan is reportedly also planning to repay notes with an aggregate principal amount of €500 million upon maturity in November 2018. The new offering is expected to close on April 9, 2018.

“Given the stable and durable cash flow generation from our global diversified platform, we decided to proactively execute on this bond offering, further strengthening our capital structure and increasing our financial flexibility as we continue to execute on our business plan for 2018 and beyond,” stated Ken Parks, the CFO of Mylan.

Parks also stated that the company will remain committed to maintaining a credit rating that is comparable to that of investments and committed to deleveraging. Mylan also revealed that it only plans to sell the notes to qualified institutional investors in the U.S. and also in accordance with rule Rule 144A of the Securities Act of 1933 as per the amendments. The notes will also be offered to non-U.S. persons outside the U.S as per Regulation S in the Securities Act. The note issuance will not be registered with the Securities Act and will not take place outside the U.S without registration.

Mylan is one of the global companies that are committed to providing new standards of healthcare and providing medical access to billions of people all over the world.

Mylan stock closed the latest trading session on Friday at $39.52 after tanking by 2.30 percent compared to the value of the stock during the previous close.


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